Is B.R.A.I.N. Biotechnology Research and Information Network AG (FRA:BNN) Excessively Paying Its CEO?
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Jürgen Eck has been the CEO of B.R.A.I.N. Biotechnology Research and Information Network AG (FRA:BNN) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for B.R.A.I.N. Biotechnology Research and Information Network
How Does Jürgen Eck’s Compensation Compare With Similar Sized Companies?
According to our data, B.R.A.I.N. Biotechnology Research and Information Network AG has a market capitalization of €209m, and pays its CEO total annual compensation worth €403k. (This is based on the year to 2018). That’s below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at €240k. When we examined a selection of companies with market caps ranging from €89m to €354m, we found the median CEO compensation was €597k.
Most shareholders would consider it a positive that Jürgen Eck takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at B.R.A.I.N. Biotechnology Research and Information Network has changed over time.
Is B.R.A.I.N. Biotechnology Research and Information Network AG Growing?
Over the last three years B.R.A.I.N. Biotechnology Research and Information Network AG has grown its earnings per share (EPS) by an average of 9.1% per year (using a line of best fit). It achieved revenue growth of 10.0% over the last year.
I’m not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I’d say performance has been pretty decent, though not amazing. It could be important to check this free visual depiction of what analysts expect for the future.
Has B.R.A.I.N. Biotechnology Research and Information Network AG Been A Good Investment?
B.R.A.I.N. Biotechnology Research and Information Network AG has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
It looks like B.R.A.I.N. Biotechnology Research and Information Network AG pays its CEO less than similar sized companies.
Jürgen Eck is paid less than what is normal at similar size companies, and but overall performance has left me uninspired. However I do not find the CEO compensation to be concerning. Whatever your view on compensation, you might want to check if insiders are buying or selling B.R.A.I.N. Biotechnology Research and Information Network shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
